Snoop Dogg-backed fintech Klarna is taking a page out of Amex's playbook and launching a loyalty program to edge out its buy-now-pay-later rivals
from retailers and shoppers alike. And as more consumers shopping online look for ways to stretch their dollars, Klarna is eager to stretch beyond its roots as a way to help consumer finance purchases.
Klarna is the first buy now, pay later player to offer a loyalty program. David Sykes, head of Klarna US, told Business Insider that while loyalty programs are common among premium credit cards, the cost of those rewards programs is often baked into annual fees and interest rates. Startups in the buy now, pay later space like Affirm, Afterpay, and Klarna all got started by partnering with merchants and integrating into their online checkout windows. But over the past couple of years, they've increasingly looked for ways to build relationships directly with consumers.
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